Money Lessons From Famous Artists
Money Lessons From Famous Artists
Here are some words of advice from artists that could double as insight for turning financial success into a creative pursuit.
M.C. ESCHER // “Are you really sure that a floor can’t also be a ceiling?” → Financial success is a matter of perception and deception.
M.C. Escher is known for images that play with perception and dimension to form mind-bending illusions. In a sense, they represent how we see the world. When faced with uncertainty and incomplete information, our brains like to take mental shortcuts that can distort reality.
These biases can have profound effects on our financial decisions. For instance, we may spend rather than save because we perceive our future selves as someone else. Or, we may buy an investment based on what we want to believe, despite all the contrary evidence. It is why the right financial steps often feel counterintuitive.
Take investing. In Winning the Loser’s Game, Charley Ellis flips the perception that it’s all about picking winners:
“Even though most investors see their work as active, assertive, and on the offensive, the reality is… stock and bond investing alike are primarily a defensive process. The great secret for success in long-term investing is to avoid serious losses.”
An awareness and understanding of the financial Jedi mind tricks we play on ourselves can help us make better financial decisions. Question your perceptions to avoid self-made deceptions. In art and money, it helps to ask: Is how I see the world, how the world really is?
FRANCISCO GOYA // “The sleep of reason brings forth monsters.” → Financial mistakes arise when emotion silences reason.
Many of Francisco Goya’s paintings shed light on humanity’s dark side; especially, times of war, when reason is overrun by our primitive instincts. Accordingly, there is a reason for every object, movement and shade of color in his work. Without it, they would just look grotesque.
Similarly, it’s important to remember your reason for every financial decision – where you park your money, what you invest in, how much you save, etc. – because there are times when everything feels unreasonable – loss of a job, stock market booms and busts, financial windfalls, etc. Those are times ripe for the monsters of fear and greed.
How we react during our most perilous financial situations will have a greater effect on long-term wealth than every small, $5-latte decision. Unchecked emotions often lead to bad decisions, from which some people take advantage, as immortalized in Warren Buffett’s famous advice to “be fearful when others are greedy and greedy only when others are fearful.”
Controlling emotions is an art, whether on a canvas or in a portfolio. The goal is to “do the average thing when everyone is losing their heads,” as Napoleon said.
HENRI MATISSE // “Don’t wait for inspiration. It comes while one is working.” → The right conditions for financial success are created by working on your finances.
To continue reading, please go to the original article here: